Q2 2019 brought many updates to tariffs, regulations and more in the international trade industry. We've compiled a recap of all of the must-know trade updates for importers and exporters as we embark on Q3.
The Panama Canal Authority (ACP) imposed a draft restriction of 47 feet in mid-March. ACP plans to impose a more severe limit on April 11, 2019. This will directly impact the size and number of TEUs that will be available for loading through the Panama Canal.
Tariff Alert: S301 List 3 Tariff Rate Update: S301 tariffs, which are $200 billion of Chinese imports, will increase to 25 percent effective May 10, 2019.
Tariff Update: List 4 of the S301 Tariffs: As of May 14, 2019, the Office of the United States Trade Representatives proposed a hearing to add an additional ad valorem duty of 25 percent on products from China. The list covers products not already subject to 301 additional tariffs including all apparel, footwear, and manufactured textile products.
U.S. - Turkey Trade: The Republic of Turkey's designation as a beneficiary developing country has been terminated. Exports from Turkey will no longer be eligible for the Generalized System of Preferences (GSP). Tariffs on Turkish steel are expected to be reduced from the current rate of 50 percent to 25 percent.
India Removed from Generalized System of Preference (GSP): The current administration has determined that India has not met some of the basic agreements of the GSP program and, as such, they will be terminated from the GSP designation effective June 5, 2019. Turkey was removed from GSP on May 17, 2019 and the exemption from safeguard measures on Crystalline Silicone Photovoltaic Cell products and large residential washers.
U.S. and Mexico have reached a deal, suspending tariffs "indefinitely."
Mexico becomes the first country to ratify the USMCA.
According to the Office of the United States Trade Representative, S301 List 3 exclusions are available through the USTR website beginning June 30, 2019 and may be submitted until September 30, 2019.